In the nation spirited fight against COVID-19, contributions to Government by deducting monthly salaries of employees a good step or not?


The author of this write up is Vishakha Pandey a lawyer and Kamla Nehru Institute of Physical and social sciences ( law faculty), Sultanpur. Currently she is also working as a sub-editor in Droit Penale News Head.



COVID-19 is now declared a pandemic, and has been quoted as the most challenging crisis since World War2 by United Nations Chief, Antonio Guterres. Nationwide lockdown and ban on the imports and exports have been causing continuous damage to government savings, and it will last until this disaster is resolved. For this, it is important to keep government expenditures minimum.

To fight the economic damage caused by novel Corona-virus, Central Government has taken various impressive steps to ensure the layman’s suffering is kept at a minimum.

For Consumer: -

·         Free Food and Fuel: - 80 crores poor people will get 5 kilograms wheat or rice and 1-kilogram pulses every month from April to June; 8 crores families to get free cooking gas.

·         Cash Transfers: - Twenty crores women with a basic bank account will get rupees 500 a month until June; three crores senior citizens, widows and disabled people will get Rs. 1,000; and 87 million farmers will be paid immediately Rs. 2000 under an existing program.

·         Insurance: - 22 lakhs health workers fighting CVID-19 will get an insurance cover of Rs. 50 lakhs.

·         Jobs and Wages: - For people earning less than Rs. 15,000 a month, the government will pay 24% of their monthly wages that feed into pension and provident fund accounts; Wages under job guarantee program increased to provide an annual benefit of Rs. 2,000 to a worker.

With the data given, we must understand how diverting funding is of the utmost priority right now.

In India, the current GDP is estimated at 3.2 lakh crores and out of which 8.15% is used only to pay salaries, pensions, and allowances to government employees. Whereas, 3.3% is spent on education, 1.3% on healthcare (India ranks 141/190 by W.H.O in health expenditure per capita) and around 1.56% spent on defense.

Taking note of the huge chunk of GDP going to salaries, The Union Cabinet on April 6th approved an ordinance to cut salaries of the Prime Minister and also all the ministers and sitting MPs by 30% for 1 year in the wake of the COVID-19 crisis, they also decided to suspend the MP Local Area Development Scheme (MPLADS) for 2 years. These twin moves will release Rs. 7,900 crores to combat the disease. President Ramnath Kovind, Vice- President Venkaiah Naidu and governors of states have also voluntarily offered to take the 30% pay cut as a social responsibility.

State Governments are also encouraging voluntarily cutting off their salaries. The Maharashtra Government will be taking 60% deductions in their salaries, while class A to B employees will get a 50% cut. There will be no salary deductions for class D staff. In a similar move, Telangana Chief Minister K CHANDRASEKHAR RAO has announced that his salary would be cut by 75% and that state ministers and MLAs will also face a three- fourth salary cut off. These moves are not only intended as an austerity measure, it reflects the thinking in government that the political the class should signal that it is not standing apart from the economic hardship caused to the common people of India and also motivate them to have faith in the Government functioning.

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